Ghana’s inflation falls to 11.5% in August below end-of-year target

Ghana’s inflation slowed to 11.5 percent in August 2025, down from 12.1 percent in July.

This marks the eighth consecutive month of decline and represents the lowest rate in nearly four years. The figure is already below the government’s end-of-year target of 11.9 percent, signaling stronger price stability.

According to the August 2025 Consumer Price Index report released by the Ghana Statistical Service, overall prices fell by 1.3 percent between July and August, providing some relief for households.

Food inflation eased to 14.8 percent, with food prices dropping by 2.5 percent in one month. Non-food inflation also declined to 8.7 percent from 9.5 percent in July, with prices of non-food items reducing slightly by 0.1 percent.

Goods inflation slowed to 13.9 percent compared to 14.2 percent in July, while the overall prices of goods fell by 1.6 percent over the month. Inflation for locally produced items remained higher than imported goods, but imported prices are easing faster, supported by a stronger cedi and reduced global cost pressures.

Regional disparities remain significant, with areas like the Upper West recording inflation above 20 percent, while Bono saw single-digit inflation. These differences are driven by supply challenges, transportation costs, and access to markets.

Government Statistician Dr. Alhassan Iddrisu noted that the consistent decline shows progress toward restoring price stability. He added that the downward trend offers important lessons and opportunities for all sectors. To businesses, he recommended taking advantage of the lower inflation environment as a green light to invest and remain competitive. For households, he advised that falling prices present a chance to save more and shop wisely. To the government, he stressed the need to consolidate the gains by maintaining fiscal discipline and strengthening local supply chains.

Dr. Iddrisu emphasized that these steps would ensure that the progress achieved in lowering inflation is sustained and translated into long-term growth, job creation, and investment.

By Bawa Musah

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